In today’s edition of our monthly wrap, we cover the key highlights in the BFSI sector for April 2025 across the following sub-verticals:  

1.       Banks and NBFCs 

2.       Broking and Capital Markets 

3.       Cards and Payments 

4.       Insurance
 

We hope you enjoy this newsletter and find it valuable. 

Happy reading! Banks and NBFCs

• The Reserve Bank of India’s tighter loan-to-value (LTV) rules for gold loans are expected to impact NBFCs more significantly than banks, due to the broader applicability of the cap. While banks are subject to a 75% LTV limit only on consumption loans, NBFCs must adhere to the cap for both consumption and income-generating gold loans.
   

•  Fintech player MobiKwik has announced the incorporation of a wholly-owned NBFC subsidiary, Mobikwik Financial Services Private Limited (MFSPL), as part of its strategic expansion into lending.
  

•  NABARD has acquired a 10% equity stake in 24x7 Moneyworks Consulting Pvt. Ltd., an agri-fintech venture that digitizes rural credit delivery through its eKisanCredit platform. NABARD wants to improve access, transparency, and efficiency in agricultural lending for small and marginal farmers.

  Broking and Capital Markets

  • SEBI is implementing sweeping changes in the derivatives market to curb speculative activity. Key measures include adopting a delta-based method for calculating open interest (OI) and increasing the gross position limit for index options to INR 10,000 Cr, up from INR 1,500 Cr. It will also cap individual traders at 10% of the Market-Wide Position Limit (MWPL)
    

  • SEBI’s new guidelines for New Fund Offers (NFOs) require Asset Management Companies (AMCs) to deploy the funds raised within 30 business days from the allotment date. The aim is to ensure that the funds are allocated as per the Scheme Information Document (SID). If AMCs fail to meet this deadline, they must provide a written explanation to SEBI's Investment Committee, detailing the reasons for the delay

    Cards and Payments

    •  In Apr’25, India’s UPI recorded a significant surge, processing 17.9B transactions, which equates to approximately 597M daily transactions. The total transaction value also rose to INR 23.94T, underscoring the expanding adoption of digital payments across the country.
      

    • BharatPe has secured final RBI approval to operate as an online payment aggregator, launching its platform under the brand BharatPe X. This allows the fintech to expand its e-commerce payment services, offer early settlements, and collaborate with NBFCs and banks for loan offerings

    Insurance

    • Rising health insurance premiums are leading to reduced policy renewals, with nearly 10% of policies facing a 30% hike this year going unrenewed, according to Policybazaar.
      

    • PB Fintech’s INR 539.4Cr investment in PB Healthcare Services marks a bold entry into India’s healthcare sector, aiming to integrate insurance with hospital care and drive major industry innovation.